KALAMAZOO, Mich. – Consumers CU is now offering Federal Housing Administration mortgages to all qualified borrowers in West Michigan and surrounding areas.
With FHA mortgages the buyer’s out-of-pocket investment may be as little as 3.5% of the purchase price and can be gifted from a family member.
Additionally, the credit union said FHA mortgages are attractive for many buyers because sellers can contribute up to 6% of the home’s purchase price toward closing costs. The homebuyer and seller, individually or jointly, can pay closing costs as agreed to in the sales contract. Rates are competitive in the current economic environment, too, making FHA loans especially attractive for a wide range of people.
FHA loans enable consumers and all lenders to use a non-traditional credit history to qualify certain borrowers, which gives more flexibility in the lending decision.
